Facing a Tough Choice: Can My Employer Take Legal Action If I Leave Without a Relieving Letter?

I am working for a company in Chennai, Alwarpet, as a systems engineer for Rs. 17,000/- per month. I have been working here for the past 11 months. I have received a new offer from an MNC in Bengaluru for Rs. 450,000/- per annum. My offer letter states the following:

TERMINATION OF SERVICE: Your service may be terminated at any time during the probation period or extended period without reason, notice, or compensation. The management's decision in this regard is final. If the employee is confirmed, the company's notice period for termination would be 30 days.

PROBATION: You will be under an initial probation period of one year from your joining date. The probation period may be extended at the management's discretion. Unless you receive written notification regarding the extension of your probation period, you will be considered confirmed after the initial or extended probation period expires.

NOTICE PERIOD: You have the option to resign from the company by providing three months' written notice. Alternatively, either party may agree to salary in lieu of the notice period.

Regarding my situation, I am supposed to join the new company by May 14th. I have given a one-month notice period. However, my manager insists that I pay Rs. 130,000/- for a smooth exit or stay with the company for another year.

I am unwilling to pay this amount. If I join the new company without a relieving letter, can my current employer take legal action against me?

Please advise on this matter.

Regards,
Gladwin

Contractual Obligations and Notice Period

You meet HR and bring to their notice that as per your contract of service, you are required to give one month's notice or one month's wages in lieu thereof. Since you have given the notice, you are not required to pay any amount, and it is the employer who is required to comply with the contract by relieving you. The company's fresh demand for notice pay wages and laying down fresh conditions are in breach of the contract. Employees cannot be blamed for the losses of the company. On the other hand, employees' dues rank priority in the event of the company being wound up.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

My new employer is ready to hire me without a relieving letter. I have assured my current employer that apart from Rs. 130,000, I am prepared to fulfill all other conditions. Therefore, I have decided to stop attending my current employer after completing the notice period.

Please provide your comments on my decision.

Regards,
Gladwin

In my opinion, the probation period is kept to judge the employee's capability and performance before their confirmation. There is always a clause regarding the notice period of one month available to both parties during probation. The employee has the liberty to resign at any time during probation with one month's notice or salary in lieu of the period. However, this is as per the terms of the appointment letter only.